Global radio revenue to reach US$40 billion - Deloitte

A Deloitte Global study is predicting worldwide revenue for radio in 2019 will reach US$40 billion, a small increase of just 1% on the current year.

Deloitte says over 85% of the adult population listens to radio, at least weekly, in the developed world and that average listening time will be 90 minutes per day.

In the USA younger demographics (18 -34) continue to surprise with more than 90% listening to 80 minutes per day.

In contrast TV viewing in this demographic is falling three times the rate of radio listening and by 2025 it is likely they will be listening to more radio than watching TV.

According to Deloitte, radio remains underreported due to the current measurement by the diary system compared to measurement done passively with the Personal People Meter used by Nielsen in the United States.

Because the PPM picks up an inaudible signal embedded AM/FM signals, it will pick up radio that is often perceived as merely background, but Deloitte argue that listeners ears are hearing radio and the commercials even if the listener is not consciously listening.

In a study in August this year, Deloitte asked people if they ever listened to radio and then compared their results to the Nielsen monthly reach, confirming that radio is significantly underreported in all demographics

IN the US, radio’s weekly reach, i.e. the percentage of people who listen to radio at least once, has been remarkably stable, hovering around 94% in the last few years and essentially unchanged since the introduction of the Apple iPod in 2001.

The annual radio revenue per capita in the US is $67, while Deloitte says in Australia it is US$37, compared to US$25 in the UK and US$48 in Canada.

The bottom line is that the US represents around $20 billion, or half the global radio revenue, with Australia expected to be close to US$1 billion next year.